CONSUMER CYCLICALS: Kering; FY24 earnings (x3)
(KERFP; NR/BBB+ Stable)
60 slides before getting to FY numbers on the presentation this morning. It summarises earnings - very subjective turnaround story, no numbers to show, but company says full price LFL sales will be positive this year (despite confirming it is yet to see that). That will net out a purposeful pullback in wholesale markets and flat Opex to leave EBIT stable (it says). It expects this recovery in headline/stabilisation on bottom line to be gradual through the year (i.e. 1H < 2H).
We have no firm view on levels - Kering doesn't offer much carry. Equally, caution on fighting any tightening - if mgmt's word is to be taken we are rolling through peak bad news, operating deleverage (from sticky fixed costs) will work the other way too, co has positive BS governance and based on primary performance a loyal investor base. Flatteners may room to continue performing if it does show a turnaround.
pdf'd notes from last 2 days; Kering FY24.pdf